Johnson & Johnson Chairman in addition to CEO Alex Gorsky told CNBC on Wednesday he expects the company’s pharmaceutical business will be able to successfully navigate any improvements in health care as a result of President Donald Trump’s brand new plan aimed a reducing drug prices.
At the same time, Gorsky warned the Trump administration to be careful not to impose “unintended consequences” on the U.S. health-care system, which can be incredibly complex. He did not elaborate.
“We know there are going to be improvements from the pricing system. in which’s why we have to continually innovate,” Gorsky said in a “Squawk Box” interview with CNBC’s Meg Tirrell. He added in which J&J, whose pharma unit accounted for 47 percent of 2017 net sales, can be still analyzing Trump’s plan, which was unveiled on Friday.
Trump’s plan, among some other improvements, will consider an alternative system for buying Medicare Part B drugs, including many cancer treatments in addition to infused biotech drugs.
J&J’s top-selling arthritis drug Remicade, which can be covered under Part B, could be affected by Trump’s plan. Gorsky said the company has looked at its entire portfolio in addition to the idea’s reinventing the idea. He said two some other drugs — Simponi in addition to Stelara, designed to treat autoimmune diseases — have actually exceeded sales of Remicade.
Earlier Wednesday, J&J announced the idea would likely relaunch its baby-care products, which saw a 20 percent sales decline since 2011 to $1.9 billion.
Speaking just hours before the company’s every-some other-year consumer products in addition to medical devices analyst meeting, Gorsky said J&J can be trying to be more like a “start-up” with its baby brand, focusing on the changing needs of “millennial moms,” who favor baby products with more natural ingredients.
“We realize in which over the past few years in which we probably got a little bit behind the curve,” he said. “nevertheless what you’re going to hear about today can be in which we totally reformulated the brand where we’re changing in addition to creating sure we’re using more natural ingredients.”